Chinese economy and business enviroment

The market reform of the People’s Republic of China was done around in the late 1970s. The paradigm of the market shifted from the centrally planned to the market-led economy. This major shift in the paradigm brought the rapid change in the economic and the social development of the country. The country’s Gross Domestic Product was also enhanced. The country has become the second largest economy in the world and powerful enough to influence the global economy. The rapid change in the Chinese economy has also brought many challenges that include the inequality, rapid growth of the population, environmental sustainability and problems to manage the old-age population and internal migration of the labor. The World Bank, in 2014 mentioned that the People’s Republic of China has surpassed the Purchasing Power Parity of the United States of America. China did not suffer the recession in 2009. However, the gross domestic product of China was in decreasing trend in 2014. Although the economic growth rate of China, there was an 11% increase in the retail sales market. The retail sales market is the result of the online shopping pattern of the Chinese consumers. The online consumers are one of the factors for the Chinese Economic growth rate. The major gross domestic product of the Chinese economy consists largely of the consumption followed by the investments and contributions. Declining GDP and the slow economic growth rate has alarmed the Chinese government and has enforced the government of China to make the new financial policy. The government is providing the tax subsidy on the small scale enterprise. The middle scale enterprise is provided with the export credit insurance.